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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Wowzer who wrote (46876)	6/24/1999 1:56:00 PM
From: marc chatman	Respond to of 95453

<<Oh sure now you guys come out the woodwork....>> Maybe you can take that as a contrary indicator and a buy signal. <g> I guess the silver lining is that by pushing back delivery, the backlog should last a bit longer. FWIW, I was one of the biggest FGI bulls until Holloway announced he will be turning over the reigns. If he were going to stay and run the show, I would still be bullish (very long term), and I would have a positive view of the merger. Over the next year or two, though, I just can't see the drillers speculating on new builds. And, as we've learned, even the new builds backed by long term contracts with the major E&P's are speculative (not that the E&P's are likely in the foreseeable future to ink any more long term contracts for new builds).

To: Wowzer who wrote (46876)	6/24/1999 2:21:00 PM
From: oilbabe	Read Replies (1) \| Respond to of 95453

Rory, someone liked the release...now up to 3/8...20 here we come!!

To: Wowzer who wrote (46876)	6/24/1999 2:32:00 PM
From: Think4Yourself	Respond to of 95453

It is amazingly easy to lose perspective. A year ago FGI stock price was over 3 times higher while revenues were less than half today's levels, crude stocks were rising, and rig usage rates were falling. Now the sky is falling and all is hopeless while rig usage rates are rising and crude stocks are falling. While backlog is not wonderful the May 10Q indicates $407 Million left. I am seeing AT LEAST 3 quarters of backlog left based on their last quarters numbers, which were 111% above year ago (when the stock was trading in the $25-35 range). The agreed delay allows FGI to concentrate on their other high priority projects, REDUCING THE RISK OF A CANCELLATION DUE TO LATE DELIVERY. At the end I have included a a comparison of last quarters revs to year ago (when the stock was trading in the $25-35 range). There is no blood on the street here. It is a mirage. Don't worry, be :-)! ... Despite this overall decline in utilization rates and, the resulting decline in orders for new offshore drilling rigs and retrofit or conversions of existing offshore drilling rigs, the Company has maintained its backlog at approximately $407 million as of March 31, 1999. Substantially all of this backlog consists of projects related to deep water drilling rigs. Some of these contracts are subject to cancellation by the customers; however, the Company has had no indication that any of its contracts might be cancelled. The backlog amount includes a $143.2 million contract for the new construction of a Friede & Goldman, Ltd. designed Millennium S.A. semisubmersible offshore drilling rig that is subject to the owner's securing rig financing. Such financing is expected to be secured in the second quarter of 1999. ... During the three months ended March 31,1999, the Company generated revenue of $145.2 million, an increase of 111.1%, compared to the $68.8 million generated for three months ended April, 5, 1998. The following table sets forth revenues attributable to new rig construction, conversion/retrofit of rigs, shipbuilding and ship and rig repair, equipment manufacturing and other activities for the quarters ended March 31, 1999 and April 5, 1998. (In thousands of dollars) Three Months Ended March 31, April 5, 1999 1998 ------------ ------------ New rig construction $ 87,725 $ 4,424 Conversion/retrofit of rigs 37,287 44,481 Shipbuilding and ship and rig repair 5,382 10,363 Equipment manufacturing 14,004 9,215 Other 1,519 784 Intersegment eliminations (761) (516) ------------ ----------- Total revenues $ 145,156 $68,751 ============ ===========